Well here’s little information on Rural Housing Service (RHS) of the United States Department of Agriculture (USDA) sponsors home loans referred to as Section 502 loans. Under Section 502, direct loans (i.e. from money appropriated by Congress) may be available to some low-income applicants. In addition, those with total household income less that 115% of the median household income in a qualified rural area may obtain government guaranteed mortgages from qualified lenders.
- Expanded qualifying ratios Buyers with satisfactory credit may qualify with higher Debt-to-Income ratios to accommodate high cost housing areas, etc
- Seller is allowed to pay Buyer’s Closing Cost (ask USDA Specialist for details)Reduces out of pocket costs for Buyers
- Low minimum credit score (640 minimum credit score required) Buyers with non-traditional or no credit histories may qualify
- No monthly PMI No monthly mortgage insurance means a lower monthly payment for the Buyers and additional cash each month